Revenue and Profit Growth
The company’s net sales surged from ₹50.27 crores in March 2024 to ₹130.96 crores in March 2025, representing a remarkable increase of over 160%. This growth in top-line revenue was accompanied by a corresponding rise in total operating income, which also stood at ₹130.96 crores in the latest fiscal year. The expansion in sales was supported by a rise in raw material costs from ₹35.87 crores to ₹79.23 crores, indicating increased production activity aligned with higher demand.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved significantly, climbing from ₹5.48 crores to ₹35.86 crores. This translated into an operating profit margin expansion from 10.9% to 27.38%, underscoring enhanced operational efficiency and cost management. Despite a slight decline in other income from ₹3.15 crores to ₹0.73 crores, the overall operating profit (PBDIT) rose sharply to ₹36.59 crores.
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Profitability and Margins
Profit before tax (PBT) rose from ₹7.14 crores in March 2024 to ₹32.32 crores in March 2025, while profit after tax (PAT) increased from ₹5.41 crores to ₹24.06 crores. The consolidated net profit followed a similar trajectory, reaching ₹23.98 crores in the latest fiscal year. This translated into a PAT margin improvement from 10.76% to 18.37%, reflecting stronger bottom-line performance.
Interest expenses increased moderately from ₹0.35 crores to ₹1.75 crores, consistent with the company’s higher borrowings. Depreciation also rose from ₹1.14 crores to ₹2.52 crores, reflecting increased asset base and capital expenditure. Earnings per share (EPS) showed a mixed trend, with basic EPS declining from ₹3.59 to ₹0.96, while diluted EPS moved from ₹2.54 to ₹1.00, influenced by changes in equity capital and share structure.
Balance Sheet and Financial Position
R M Drip & Sprin’s balance sheet strengthened considerably, with shareholder’s funds doubling from ₹40.63 crores to ₹80.01 crores. This was driven by an increase in equity capital from ₹15.08 crores to ₹24.98 crores and reserves rising from ₹20.43 crores to ₹55.03 crores. The company’s total liabilities expanded from ₹66.69 crores to ₹156.11 crores, reflecting increased borrowings and current liabilities to support growth.
Long-term borrowings rose sharply from ₹0.70 crores to ₹16.20 crores, including secured and unsecured loans, while short-term borrowings doubled to ₹10.24 crores. Current liabilities also increased substantially, driven by trade payables and other current liabilities. On the asset side, total assets more than doubled from ₹66.69 crores to ₹156.11 crores, supported by growth in net block, capital work in progress, inventories, and sundry debtors.
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Cash Flow and Liquidity
The company’s cash flow from operating activities remained negative, widening from -₹13 crores in March 2024 to -₹27 crores in March 2025. This was primarily due to a significant increase in working capital requirements, which rose from -₹21 crores to -₹57 crores, indicating higher inventory and receivables tied up in operations. Cash flow from investing activities also increased its outflow from -₹6 crores to -₹9 crores, reflecting ongoing capital expenditure.
Financing activities provided a positive cash inflow, rising from ₹20 crores to ₹36 crores, largely driven by increased borrowings and equity infusion. Despite these movements, the net cash inflow/outflow remained balanced at zero, with closing cash and cash equivalents steady at negligible levels. This suggests the company is managing its liquidity carefully amid expansion.
Outlook and Considerations
Overall, R M Drip & Sprin has exhibited strong historical performance marked by rapid revenue growth, improved profitability, and a fortified balance sheet. The company’s ability to scale operations while enhancing margins is a positive indicator for investors. However, the rising debt levels and negative operating cash flows warrant close monitoring to ensure sustainable financial health. The increase in working capital requirements highlights the need for efficient asset management going forward.
Investors should weigh these factors alongside sector trends and market conditions when considering exposure to R M Drip & Sprin.
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